Effect of advertising in the soft drink market on consumer behaviour : A case study of COCA-COLA in Makerere University

Abstract

In an era of high degree of competitiveness, if there is one prerequisite to give businesses a competitive edge, it is the need to advertise effectively and efficiently. Since so much money is being devoted to advertising, analysing its effect remains vital for firms, especially for those forming part of the collusive oligopolistic market of soft beverages, where advertising helps in making the difference in the market place. This study mainly analyses the influence advertising has on consumers’ buying behaviour, with particular reference to Coca- Cola advertisements. It also assesses the different factors that are influenced by these advertisements for example quality, brand loyalty and others. The methodology used in the study consisted of a survey on a sample of 150 respondents using the Cochran’s sample size formula. The findings revealed a positive effect of advertising influence on consumption level in the soft drink market. It was revealed that 72% of the population have continuously consumed these products due to advertisements and of those, 44.4% are moderately influenced by the advertisements. It was recommended that nowadays, it is important to sustain customer’s loyalty to a company’s product, maintaining a good reputation as a company and proper product packaging hence the need to develop appropriate advertising strategies like brand equity to prevent consumers from turning disloyal to the brand.